Which of the Following Is Often Referred to as the Basic

question 158

Multiple Choice

Which of the following is often referred to as the basic postulate of economics?

• A) Individuals act only out of selfish motives.
• B) Incentives matter--individuals respond in predictable ways to changes in personal costs and benefits.
• C) The accuracy of the assumptions is the best test of an economic theory.
• D) The value of a good is objective; it is equal to the cost of producing the good.

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Definitions:

Objective Probability

The likelihood of an event occurring based on a calculation from available data, independent of personal thought or opinion.

Ball Leadership Team

A dynamic group of individuals with unique roles and responsibilities working collaboratively to guide and direct the activities and strategies of a particular project, organization, or mission.

Critical Problems

significant, urgent issues or challenges that require immediate attention and resolution to prevent adverse outcomes.

Certainty

The state of being completely confident or having an absolute conviction about something, without doubt.